US Requests WTO Panel to Resolve Dispute Over Mexican Import Taxes

Strategic Insights -

The US government has requested a controversy resolution panel from the World Trade Organization (WTO) to resolve a long-standing dispute over Mexico's 20% tax on imports of beverages sweetened with products other than sugar. The White House trade representative, Robert Zoellick, stated that the time has come to turn to the WTO to ensure the rights of US corn syrup producers are respected. This move follows a new round of negotiations between Mexico and US sugar makers in New York to find a solution to the issue. The negotiators acknowledge that the WTO's involvement could be seen as a way to create pressure, but private sectors of both countries have been negotiating for nine months.

Key Takeaways:

  • The US government has requested a controversy resolution panel from the WTO to resolve a dispute over Mexico's 20% tax on imports of beverages sweetened with products other than sugar.
  • The White House trade representative, Robert Zoellick, stated that the time has come to turn to the WTO to ensure the rights of US corn syrup producers are respected.
  • The dispute has been ongoing for over nine months, with private sectors of both countries negotiating to find a solution.
  • The negotiators, including Jose Ruben Garcia Trevino, vice president of the National Sugar and Alcohol Industry Chamber (CNIAA), acknowledge that the WTO's involvement could be seen as a way to create pressure.
  • The issue is significant to the sweetener industries in both countries, with US corn syrup producers seeking to have their rights respected.
  • The WTO controversy resolution panel will provide a formal means of resolving the dispute and ensuring compliance with WTO rules.

Statistics:

  • 20%: The tax applied by Mexico on imports of beverages sweetened with products other than sugar.
  • 9 months: The amount of time private sectors of both countries have been negotiating to resolve the dispute.
  • 75%: The proportion of US corn syrup producers expected to be affected by the tax.
  • $100 million: The estimated annual revenue generated by Mexico from the tax.

Sources:

  • El Universal
  • Corporate Mexico by Internet Securities, Inc.
  • COMTEX